Playing Asia's Changing Tides

The region is at an important juncture. Can it pull itself back up, or is it in for another round of hardship? And where's the best place to put your money?

Following the financial crisis, Asia was awash in the liquidity provided by central banks in the U.S. and Europe, and more recently, Japan. The rising tide lifted all boats: Asset prices in the region rose and currencies strengthened. Now, with the U.S. Federal Reserve about to begin tapering of asset purchases, the tide is going back out, and Asian weaknesses are being exposed.

The biggest problems have come in Indonesia and India, which have the region's highest current-account deficits, meaning the countries on balance...